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The International Economy And Globalization
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The International Economy And Globalization – MCQs
66 questions. Click to practice.
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1.
What is a common effect of heightened foreign competition on domestic labor wages?
Cause higher inflation rates within the country
Lead to a decrease in productivity per domestic worker-hour
Limit the wage growth of local workers
Boost the earnings of domestic industries competing with imports
2.
Among the following U.S. industries, which one has experienced the least impact from foreign import competition in recent times?
Automobile manufacturing
Steel production
Television and radio manufacturing
Software development
None of the above
3.
What fundamental concept underlies international trade?
Countries must export more than they import
Nations should import more than they export
Resources move across borders more easily than products
Goods move across borders more easily than resources
Trade balances should always be equal
4.
How does international trade compel local companies to enhance their competitiveness?
By launching innovative products
Through improvements in product design and quality
By reducing product prices
All of the above
5.
Which of the following is NOT typically replaced by international trade in goods and services?
Cross-border flow of capital
Global movement of workers
Transfer of technology across countries
Local production of various goods and services
6.
What is a fundamental reason countries engage in international trade?
Certain countries choose to specialize in producing specific goods while others focus on different products
Natural resources and production capabilities vary among countries involved in trade
International trade allows nations to increase their profit potential
Differences in interest rates exist between various trading countries
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